The S&P/ASX 200 Index (ASX: XJO) fell 2.5% on Monday and another 2.5% yesterday. It seems the positive market sentiment that has defined the ASX over the past 4 weeks might be getting the wobbles.
Still, for every cloud a silver lining! Right now, a lot of ASX shares are cheaper than they were last week. So if you have $5,000 that you'd like to invest, here are 3 options to consider today.
Xero Limited (ASX: XRO)
Xero is one of those rare stocks that I see coming out of this coronavirus crisis relatively unscathed. After all, we're talking about an online accounting software company here. And despite all of the dreadful ructions going on in the economy right now, there are a lot of companies that still need to manage payrolls, pay taxes and keep their books straight.
Xero shares have risen strongly over the past few weeks, but are still sitting substantially below the all-time highs that February saw (over $90 a share). Thus, if you're a long-term believer in this WAAAX star, today might be a good opportunity to pick up some Xero shares.
Coles Group Ltd (ASX: COL)
On the other side of the growth spectrum, we have Coles. This supermarket giant needs no introduction and is also one of the companies that I expect to be relatively unscathed by the chaos that the coronavirus has inflicted on the economy. At the end of the day, Coles sells products that we all need – which makes it a great long-term investment in my books (albeit one that won't turn you into a millionaire overnight).
Coles has tightened up its costs over the past year, which has allowed it to establish a strong dividend policy of paying out 80–90% of its earnings as dividend. On current prices, this fully-franked dividend equates to a grossed-up yield of around 3.76%, which I don't think is a bad offering in this low interest rate environment.
iShares Core S&P/ASX 200 ETF (ASX: IOZ)
A final option to consider is this ASX 200 exchange-traded fund (ETF). This ETF holds all 200 shares in the ASX 200 – everything from CSL Limited (ASX: CSL) and Westpac Banking Corp (ASX: WBC) to JB Hi-Fi Limited (ASX: JBH).
IOZ also has a very healthy trailing dividend yield of 5.05%, which would represent a useful stream of income for your portfolio every quarter as well. This kind of investment is perfect (in my opinion) for anyone who wants to invest but can't decide where – you're literally buying every company in the top 200. It's also the kind of investment you can put in the back drawer and forget about for 20 years, which may be appealing to some!
